PREMIUM FOR GOLD

Hokitika Guardian, 14 April 1930, Page 2

PREMIUM FOR GOLD

AUSTRALIAN PR OPOSAL.

WELLINGTON, April 10

Gold in Australia, is now worth £d Os per cent more than the ruling rate on account of the adverse exchange rate.

'The chairman of the New Zealand Associated Banks announced yesierlav that lie had leceivcd the following etter dated March 28, from the Royal lint, Melbourne.

“I have the honour to advise that in ■ccordancc with the arrangements lade by the Commonwealth Bank, a .reniium on newly won gold deposited it the mint for sale to the Connnon.•ealtli Bank is at present being paid „ the rate of £0 3s per cent. This rate

; subject to variation from time to ime according to the ruling selling ite for telegraphic transfer Australia n London, less toe estimated total o«ts of shipment to London, viz, ibout 25s per cent. It is hoped that he premium on gold now payable in Australia will be sufficient to induce ncreased consignments to this branch.” Apparently these arraggements have >een made by the Royal Mint, Mellourne, with the Commonwealth Bant vitli the object of incensing the proluetion of gold in Australia. It wont ippear that the ultimate object is to issist to adjust the present adverse exchange rate and the trade balance against Australia by exporting gold fo London.

At the present time the selling rah for telegraphic transfer Australia on London is £6 10s per cent, u-huh is equal to the premium on gold of £5 os er cent pavaole by the Commonwealth tank, plus 23s per cent, the cost ol ihipment to London. In the event of he telegraphic transfer rate advancin'/ •ay to £7 per cent, the premium on gold brought by the Commonwealth

tank would flien he £0 15s per com 'onversoly. if tjic rate were lowered : o £0 10s per cent, the premium on gold would he decreased to £-1 os per cent

A cable message reported that the Commonwealth Bank bed arranged for further shipments of £8,000,000 in gold overseas. This makes a total of £24,000,000 exported from Australia since July, 1929. The general object T to relieve the exchange position, but most of it is being used for interest obligations.